Battle Over Connecticut Liquor Prices Continues

Total Wine and More has come out against two proposed bills in the house that would increase penalties for selling alcoholic liquor below the state’s minimum bottle price.

Connecticut is the only state with a minimum pricing rule for wines and spirits that prevents businesses from selling below cost. It is often seen as a boon for smaller liquor stores and an inhibitor for larger stores looking to exercise the inherent efficiency of large-scale buying.

House bill 5923 would increase the penalty for engaging in false or misleading advertising, including violating the state’s minimum bottle provision to a $25,000 a day fine on top of current regulations.

House bill 5925 would subject a business that violates the minimum bottle law to a 10-day permit suspension and an additional fine of $50,000 along with current regulations as well.

The stated purposed of bill 5925 is, “To increase the penalties for intentional violation of minimum bottle provisions to prevent intention violation of the law.”

Both bills were proposed by State Rep. David Baram.

“Instead of doubling-down on minimum bottle, Connecticut's leaders should enact policies that grant consumers the freedom to pay lower prices,” Total Wine said in a company statement. “It's time for Connecticut to finally enter the 21st Century when it comes to the sale of wine and spirits.”

Retailers are allowed to discount one item to 90 percent of the minimum price per month.

Last year, Total Wine defied the law and began selling liquor below the minimum bottle price. It eventually started selling at the minimum bottle price again, but also sued the state and alleged the law was unconstitutional and amounted to price fixing.

Total Wine agreed to pay a $37,500 fine. Another large chain, BevMax, also sold below the minimum price for a short period.

Total Wine has locations in Norwalk, Milford, West Hartford and Manchester.

The minimum pricing rule is unique to Connecticut and results in up to 24-percent higher prices for identical products offered in different states, according to a study by the Distilled Spirits Council of the United States.

Gov. Dannel Malloy has pushed for several liquor law changes since he became governor. His push led to Sunday sales and longer sale hours. He has also said he supports an end to the minimum price law, which would drive more consumers to buy alcohol in-state instead of driving over the state line for cheaper products.

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